From financial upheaval to political change, 2012 brought transformation in Glendale.

Here’s a look at some of the city’s biggest stories of the year.

Tight financial times

This year’s budgeting was long and painful in Glendale. The City Council in February began combing department budgets for savings to fill a $35 million shortfall in the budget that opened July 1.

The city had little money left to take from a rainy-day fund as the city’s reserve had dropped from $72.5 million in the 2005-06 budget year to about $2 million this year, far below the recommended amount.

The city laid off about 50 employees and raised the city’s sales-tax rate by 0.7 percent for the next five years.

The city’s foray into professional sports brought new expenses that pressured the budget, including paying a potential Phoenix Coyotes buyer to manage the city-owned arena and making the debt payment on the city’s spring-training ballpark. The city had borrowed an extra $50 million when it built Camelback Ranch Glendale, which it used to begin making the payments for the facility. That cushion ran out this year, which meant the payment had to come from the city’s general operating fund.

Voters keep tax increase

Some rebelled against raising the city’s tax rate to 2.9 percent, which is above the rate in most Valley cities. A group called Save Glendale Now collected signatures and placed Proposition 457 on the November ballot to repeal the tax increase.

City leaders warned of the deep cuts that would be needed if the tax increase, estimated to bring in as much as $25 million annually, went away.

Voters defeated Prop. 457 by a 2 to 1 ratio, opting to keep the tax increase through 2017.

Political exodus

An exodus of incumbents began in March when Mayor Elaine Scruggs, who has led the city since 1993, announced she would not seek an eighth term.

She would have faced what was shaping up to be the toughest campaign of her political career amid city financial problems and three candidates expressing interest in running against her.

“My cause has been, and will always be, helping Glendale achieve its best possible future,” Scruggs said in an e-mail announcing her retirement.

Voters in November ousted Joyce Clark, the only incumbent up for election who opted to run.

The city’s top non-elected leader also retired. City Manager Ed Beasley, who was the architect of the city’s sports and entertainment district, departed in June with the Coyotes deal not yet finalized and the city’s spring-training ballpark weighing on the budget.

New leaders elected

Highly competitive mayoral and City Council races dominated news in Glendale for much of 2012. All four races went to runoffs in November.

Republican state lawmaker Jerry Weiers, who has called for a tighter rein on the budget and sports deals, beat out Manuel Cruz for mayor.

After two Glendale City Council votes in five months and more than three years of uncertainty, a Phoenix Coyotes deal was approved in late November. A council majority approved an arena-management deal worth more than $300 million and lease with Coyotes suitor Greg Jamison that should keep the hockey team as the anchor tenant at the city-owned Jobing.com Arena for the next 20 years. Jamison has until Jan. 31 to purchase the team from the National Hockey League.

Luke nabs F-35

The future of the U.S. military’s stealth-fighter program will take shape at Luke Air Force Base, which in August was designated as a pilot-training site for the new F-35, ensuring the base will remain a linchpin of Arizona’s defense industry and the West Valley’s economy. The first of 72 high-tech stealth fighters, which cost nearly $137 million apiece, are expected to begin arriving as early as next fall, but the Glendale base is expected to begin spending millions of dollars almost immediately to prepare for their arrival.

DV gets new leader

The Deer Valley Unified School District got a permanent school chief for the first time since January 2011.

The school board in April hired James Veitenheimer, who was superintendent of the Keller Independent School District in Texas. He was on the job by summer with an annual base salary of $170,750.

Justice Court woes

Arrowhead Justice of the Peace Phillip Woolbright was removed from office in July following an ethics investigation for dodging a court server and other misconduct. The Maricopa County Board of Supervisors in August appointed Melanie DeForest to lead the Arrowhead Justice Court, which covers cases out of Peoria, Sun City and Glendale. DeForest withdrew from her election campaign a week after The Arizona Republic questioned her education claims and other credentials. Voters in November elected Peoria resident Craig Wismer, a longtime employee of U.S. Sen. Jon Kyl, as Arrowhead Justice of the Peace.

New outlet stores bring crowds

Tanger Outlets Westgate opened nearly 85 stores in November, including H&M, Michael Kors, J. Crew, Coach, Polo Ralph Lauren and Under Armour. The mall is a critical third anchor, along with Jobing.com Arena and University of Phoenix Stadium, for the Westgate complex. As many as 5 million shoppers will go to Tanger each year, according to the mall owner’s projections. The mall is expected to generate $2.5 million in annual sales tax.

Missing girl’s mom charged

The Glendale Police Department in June ended a 4/1-month landfill search for the body of Jhessye Shockley, who was reported missing in October 2011.

Although unable to find the missing 5-year-old girl’s body, police believe the Mobile landfill is Jhessye’s final resting place.

Police arrested Jerice Hunter in September on suspicion of murdering her daughter. Hunter pleaded not guilty in the girl’s death.

Another casino appeal

The Tohono O’odham Nation in September came out on top of a 9th U.S. Circuit Court of Appeals ruling. A three-judge panel upheld a U.S. Department of Interior decision to take the tribe’s Glendale-area land into the reservation system.

Getting the land designated as a reservation is a necessary step for the tribe to build a resort and casino on the property near 95th and Northern avenues.

But it isn’t over.

Opponents of the plan — Glendale, the Gila River Indian Community and the state Attorney General’s Office — have requested that a 14-judge panel at the 9th Circuit hear the case again. The court has not yet responded.

Connecting the West Valley

Dirt turned on the Northern Parkway project in March and construction of Loop 303 marched south into Surprise.

Phase 1 of the Northern Parkway, an east-west corridor, will run through Maricopa County, El Mirage and Glendale. The stretch from Sarival Avenue east to Dysart Road was pegged at $61.5 million. Future phases of the 12.5-mile project, from Loop 303 to Grand Avenue, would widen Northern Avenue into a multilane parkway.

Sound walls, overpasses and stretches of highway went up this past year in Surprise as the state builds Loop 303, which eventually will be a six-lane freeway connecting Interstate 17 to I-10. Crews completed Peoria’s section in 2011, then moved south, where much of the loop still is a two-lane road.

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